Revlon's Q2 impacted by higher ad spend for consumer brands

NEW YORK — Revlon announced on Wednesday that second-quarter net sales in its consumer segment experienced a 2.5% boost thanks to higher sales of Revlon color cosmetics, Revlon ColorSilk and Sinful Colors, but a higher advertising expense impacted profits during the period.



“All-in-all, we consider this a good quarter. As you know, a significant part of our business in the United States is in the mass color cosmetic category, which is declining year-to-date into 2014 versus 2013,” Lorenzo Delpani, president and CEO, told analysts on Wednesday. “While the color cosmetics category in the United States continues to be softer, we remain focused on supporting our brands with the intent to grow market share and develop our business. To that end, we have increased advertising spend by $11.7 million in the second quarter versus last year, which was primarily in support of our consumer brands. Year to date, we have spent $20 million more than last year, which is a 16% increase.”



During the quarter, net sales in the consumer segment totaled $367.3 million, up 2.5%. The company attributed the increase to higher sales of Revlon color cosmetics, Revlon ColorSilk hair color and Sinful Colors, partially offset by lower net sales of Almay color cosmetics.



Consumer segment profit decreased 2% to $82.4 million, largely due to $11.7 million of higher advertising expense.